8 Ways to Reduce Expenses and Improve Revenue
Most churches and ministries have been financially impacted over the last several months by rising inflation and have concerns about a potential recession. Effective budget management is increasingly vital to churches during this uncertain economic environment. The need for additional budget funds is impacting most churches while contributing families are also being hit hard by rising costs and may be tempted to reduce their giving. How can churches deal effectively with the need for additional budget resources during a season when reduced giving may become a reality? Here are eight ways to reduce expenses and improve revenue:
1. Evaluate the effectiveness
Evaluate the effectiveness of every ministry, event, and activity against the church’s mission, vision, and values to reduce or eliminate expenses that are not as likely to facilitate kingdom growth or the fulfillment of its mission.
2. Defer maintenance and upgrades
While it’s not advised to defer maintenance and upgrades for extended periods because of increased costs, postponing specific projects for a season can help churches to weather temporary budget challenges. Churches may also consider using appropriately designated funds or cash reserves for special projects or upgrades to preserve budget funds.
3. Cultivate prospects
Cultivate prospects who are attending or giving regularly and make a point to thank them personally.
4. Identify at-risk members
Identify at-risk members who are attending or giving less regularly and make a home visit to value them and hear their feedback.
5. Send quarterly giving reports
Mail or email quarterly giving reports along with a letter from the pastor celebrating what God is doing, encouraging members, informing them of financial needs, and thanking them for their faithfulness.
6. Take up a special offering
Take up a special “Harvest Offering” this fall to catch up on any budget deficit or to fund a project or two that might reduce demand for budgeted funds.
7. Conduct a stewardship emphasis
Conduct a stewardship emphasis that includes a sermon series and Bible study lessons that encourage members to give faithfully to support the budget. Consider ending the emphasis with a “Prove The Tithe” Sunday, asking everyone to bring a tithe on the final week (based on Malachi 3:10).
8. Promote online giving
Promote online giving options. Giving by website, app, or text can improve giving regularity and increase total giving.
Terry Jeffries | SBTF Director of Investments